Relates to classifying certain property held in cooperative form as class one properties for assessment purposes.
Summary
This bill amends New York’s real property tax law to expand the circumstances under which certain cooperative and condominium properties may be treated as “class one” property for assessment purposes. Class one status generally applies to one-, two-, and three-family residential property and is associated with more favorable assessment treatment than other residential classes. The bill revises the statutory definitions to remove several limiting conditions that currently restrict cooperative and condominium units from being placed in class one, including limits tied to building height, prior assessment history, and certain ownership structures.
In practical terms, the measure would make it easier for some owner-occupied condominium units and cooperative housing arrangements to qualify as class one property, while leaving the existing treatment of other categories of property largely intact. The bill also preserves special rules for certain vacant land in special assessing units and does not alter the general framework for mobile homes, trailers, or other noncovered property. The effective date would be January 1 following enactment.
Impact
The bill would amend section 1802 of the Real Property Tax Law, changing the classification rules used by assessors to determine whether certain residential cooperative and condominium properties are taxed as class one property. This could affect assessment caps, tax rates, and the way local assessors value eligible properties, particularly in New York City and other special assessing units where class distinctions matter most. It would primarily benefit owner-occupants of qualifying cooperative and condominium homes by potentially placing them in a more favorable tax class.
Sentiment
There is no recorded committee transcript or vote history in the provided materials, so no direct legislative debate or roll-call sentiment is available. Based on the bill’s sponsor and caption, the measure appears to be a pro-homeowner tax classification proposal aimed at expanding favorable treatment for certain residential co-ops and condos. The absence of recorded opposition or amendments in the provided context suggests the bill was introduced in a straightforward policy posture, but the actual level of support or resistance cannot be determined from the available record.
Contention
The main policy issue is whether cooperative and condominium units should be treated more like one-, two-, and three-family homes for tax assessment purposes. Supporters would likely argue that owner-occupied co-ops and condos function as primary residences and should receive class one treatment, while opponents may be concerned about narrowing the tax base or extending preferential treatment beyond traditionally classified homes. Another likely point of contention is the scope of eligibility, since the bill removes several existing restrictions that currently limit which co-op and condo properties can qualify.
Classifies properties held in condominium and cooperative form for assessment purposes as class one-a properties; requires that the annual tax rate percentage change for class one-a properties does not exceed the annual tax rate percentage change for class one properties.
A bill for an act relating to property taxes and local government funding by modifying the methodology for determining actual value of property, certain levy rates, bonding procedures, assessment protests, and assessment limitations of certain classes of property, and including retroactive applicability provisions.
Defines Class 5 property to include the commercial portion of mixed use properties and fix the tax rate for Class 3 property at thirty-eight dollars and 33 cents ($38.33) per one thousand dollars ($1,000).